$SOL Price Forecast: SOL Tests $140 Support Zone Amid Rising Selling Pressure

Solana (SOL) is currently testing the critical $140 support level, a zone not seen since October 2024. Over the past month, SOL has experienced a 38% decline in value, with a 40% drop in market capitalization, now standing at approximately $70.6 billion .

Key Technical Indicators

MACD Indicator: The Moving Average Convergence Divergence (MACD) has shown a deepening bearish crossover, suggesting increasing downward momentum.

Relative Strength Index (RSI): Currently in oversold territory, the RSI indicates that selling pressure has reached extreme levels, potentially leading to a short-term relief rally.

Bollinger Bands: SOL is trading near the lower Bollinger Band ($140.63), indicating a significant deviation from the 20-day simple moving average ($179.60). A failure to reclaim the mid-band as support could lead to further downside.

On-Chain Metrics

On-chain data reveals a sharp decline in Solana's transfer volume—from $1.99 billion in November 2024 to just $14.57 million. Additionally, decentralized exchange (DEX) volumes have fallen by 30% over the past week, marking their lowest level since October 2024 .

Market Sentiment

The market sentiment is characterized by extreme fear, with SOL Futures Open Interest decreasing from $8.57 billion on January 19 to $4.41 billion on February 26. This indicates reduced trader confidence and a lack of new liquidity entering the market .

Outlook

If SOL fails to maintain support at $140, the next significant support levels are at $125 and $130. Conversely, reclaiming the $160–$170 range could signal a potential short-term recovery. However, without a major bullish catalyst and increased buying volumes, SOL may continue to face downward pressure.

*Note: Cryptocurrency investments are subject to high volatility and risk. Investors should conduct thorough research and consider their risk tolerance before making investment decisions.*